Year: 2007

Gati opens Bangalore warehouse for express goods

The express distribution and supply chain company Gati plans to invest USD 100 million in the next three years. It plans to set up 19 express distribution centres (EDC) with an addition of one million sq ft area across India by 2009.

Gati has launched its mechantronic EDC in Peenya, an industrial town in Bangalore. Spread over an area of three acres, the mechantronic EDC provides a total storage capacity of 2,50,000 sq ft. The mechantronic EDC will basically offer multiple levels of storage, sorting, pick pack facility with racking and security systems, material handling equipment and an online warehouse management system for managing customer’s inventory. Meanwhile, the company has acquired land in Nagpur for setting up its central distribution centre. It is targeting a market share of 15% by 2009.

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Postcomm agree to Royal Mail request

Postcomm has agreed to Royal Mail’s request to suspend until the end of its current financial year the payment of compensation to bulk mail customers, and to ensure that the company is not subject to a downward adjustment to its allowed revenues (known as the ‘C factor’), where industrial action has taken place and quality of service figures have dropped.

The reason for this decision is that Postcomm wishes to ensure that – against a background of Royal Mail’s current financial position, including its substantial pension deficit – the possibility of having to pay compensation and/or earning reduced revenue next year does not discourage the company from taking the steps needed to modernise its business, which will be to the benefit of all mail users.

Postcomm’s agreement to these suspensions is subject to some important safeguards for customers:

-A final decision on the amount of any relief will not be made until after the end of this financial year (31 March 2008) when Royal Mail’s final quality of service figures will be known. In making its decision at that point, Postcomm will expect Royal Mail to be able to demonstrate that the industrial action (a)arose as a result of carrying out its transformation plans and not for some other reason, and (b) had a direct causal link to quality of service failures.

-After the end of the financial year, Postcomm will convene an open meeting at which Royal Mail will present the main points in its application. Participants will be able to ask for further explanation of the justification for agreement by Postcomm to Royal Mail’s request.

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Palletways extends palletized freight services into Switzerland

Palletways, Europe’s largest provider of express distribution services for small consignments of palletized freight, has appointed its member in Switzerland as part of the expansion of its Central European Network which also covers the Benelux countries, Germany, Denmark and northern France.

Palletways will provide a 48/72-hour distribution service to and from the regions covered by the Central European Network.

Palletways Central European Network is the company’s second pallet operation in mainland Europe. The company also provides express distribution services for small consignments of freight carried on pallets across Italy and is soon to establish an operation covering Spain and Portugal.

Adam Shuter, European Development Director at Palletways, said:

“The expansion of the CEN into Switzerland is part of our long-term aim to create the first pan-European pallet network. The development will open up the Swiss market to manufacturers and suppliers of goods across the countries in which we operate and provide them with a quicker and more costs effective route from/into Switzerland than ever before. It will also allow producers and suppliers of goods in Switzerland to access a major marketplace across Central Europe.”

Palletways Central European Network now has 30 members and more will be recruited to enable future growth.

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TNT outlines carbon positive strategy at 4th CSR Summit in Middle East

TNT Express has outlined its carbon positive strategies at this week’s 4th CSR Summit, the most innovative and groundbreaking event in the Middle East dedicated to Corporate Social Responsibility, in Dubai.

Addressing delegates from over 20 countries, Mike Patrick, Director of CSR, TNT Express said that there is a need for regional corporations to implement and integrate a sustainable and environmental stewardship programme into their CSR strategy to combat climate change.

‘TNT’s main target is to reduce CO2 emissions and we will achieve our goal through a number of ways, including developing eco-friendly products for our customers, best in class operational vehicles, energy efficient buildings, cutting down on business travel by 30%, as well developing and implementing a sustainable aviation strategy with measures that continuously reduce our emissions.’

Patrick adds that TNT has already taken steps to implement the International Environmental Management certificate, ISO 14001, in each of its locations by end of 2007, which in some countries has already reduced paper costs by 80%, electricity costs by 15% and recycling costs by 10%.

TNT was also recently awarded the prestigious ISO 14001, for its businesses in Kuwait, Saudi Arabia, Bahrain and the UAE and holds the SA 8000 certification, the standard for improving working conditions.

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Pitney Bowes and RPost Ink Global Deal

Pitney Bowes and RPost, the leader in managed outbound messaging with its flagship Registered E-mail services, today announced that they have entered into a global alliance. Under terms of the agreement, Pitney Bowes will offer RPost Registered E-mail services to its mailstream customers.

By adding RPost services, Pitney Bowes can now provide its customers with a full set of high-value outbound messaging tools for client records management, compliance, e-discovery, paper reduction and cost reduction initiatives. RPost Registered E-mail messages provide e-mail senders with verifiable proof of message delivery, content and time stamp for e-mails sent to any Internet address.

Information-intensive markets, such as legal services, are challenged with managing thousands of records and producing information on demand, faster and more cost-effectively than ever before. The Radicati Group, a leading market research firm in the computer and telecommunications industry, estimates that the average business user sends and receives about 170 e-mail messages per day. Highly sensitive business is conducted via e-mail, with discoverable data scattered across an organization, on mail servers, desktops and mobile devices. The RPost service will enable Pitney Bowes customers to streamline the process of managing and retrieving critical business communications, with an easy-to-use, cost-effective solution.

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TomTom and Vodafone UK To Introduce the World’s Most Advanced Travel Time Information System for Superior Navigation in the UK

TomTom, the world’s largest navigation solutions provider, and Vodafone UK today announce that they will jointly develop a new traffic information system that will deliver superior travel time information.

This exclusive agreement will see TomTom’s in-house patented technology use information from the Vodafone UK network to provide accurate, real-time information on the speed and direction of cars travelling on all major roads across the UK. As a result customers will have a better understanding of the exact traffic situation and be able to plan and change their route instantly to avoid traffic congestion.

Details of the service will be made available at launch which is expected to be in the first half of 2008. All current and future TomTom users will be able to benefit from the service, once it is available. The solution will also be available for road authorities and businesses, who may use it for dynamic traffic control measures and improved fleet management.

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DHL and CA, Inc expanded express logistic pact

DHL announced today it has been chosen by CA, Inc., one of the world’s largest management software companies, as its exclusive partner for domestic and international door-to-door express and heavyweight transportation and customs brokerage services worldwide.

Based in Islandia, N.Y., home to one of its key distribution centers and corporate offices, CA was looking for a single express shipping and logistics company that would unify its supply chain in more than 140 countries through an efficient and highly responsive, single point-of-contact account management. CA had been using multiple vendors for its domestic and international transportation services and had managed its relationships on a regional level rather than through a uniform global solution.

The multi-year agreement calls for DHL to manage the transportation of all CA shipments linking its five global distribution centers with all of CA’s sales facilities. The new agreement builds upon an ongoing and successful 15-year relationship under which DHL coordinates all of CA’s shipping services in North America as well as international transportation from North America to worldwide destinations.

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Mailers react to USPS’s veto of rate relief

The mailing community is disappointed that the Governors of the U.S. Postal Service failed to provide relief for the millions of commercial mailers who are being hit with massive, unplanned increases in postage costs.

The Postal Regulatory Commission’s “Second Opinion and Recommended Decision on Reconsideration,” issued May 25, established a transitional temporary rate reduction of 3 cents for all Standard Mail Regular flats and 2 cents for Standard Regular nonprofit flats. In a vote during the Board of Governors’ closed meeting on June 19, the Governors decided not to implement the temporary change.

On March 19, the Governors asked the PRC to reconsider some of the prices originally recommended on Feb. 26 and implemented on May 14 because they were concerned that price increases recommended by the PRC may impose an unnecessary degree of “rate shock” on the catalog industry and small businesses particularly. The recommended increase for some catalog mailers is as much as 40 percent, which is more than double what the USPS proposed.

Mr. Cerasale noted that a ripple effect is already being felt by flat-shaped mailers as well as by the downstream companies that provide mailing services and supplies.

In its reconsideration proposal, the USPS had asked for a 3-cent reduction in piece rates for Standard Regular flats offset by a 0.7 cent increase in piece rates for most Standard Mail Regular letters. The USPS reasoned that this was appropriate because under the breakeven requirement of the Postal Reorganization Act, lower rates for similar categories must be offset by higher rates for others.

James C. Miller, chairman of the USPS Board of Governors said the approach suggested by the [PRC] would result in breakeven within the test year, if the effective dates for selected rate changes were changed outside of the test year.

Mr. Miller said the PRC estimated that the cost to the USPS of its recommendation would be $100 million.

Another issue was the difficulty in implementing the PRC’s recommendation.

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